2022 conventional loan limits also have been increasing to keep up with the prices and the values here in Las Vegas, Nevada. So they did increase up to about $647,000 and changed this year. So what that means is that if you have a loan amount that goes over the $548,000, the prior limit that was set forth last year, and you need to go ahead and purchase a property that's at that higher price point, you are not required to be in the jumbo loan category. So what this means is that you don't need to put down 10, 15, 20% as the thought process was prior to. You can get in with as little as 3% down if you're a first time home buyer and 5% if you're not a first time home buyer.
So what this helps with is that it gives you more money to put in your pocket versus having to do on the down payment and/or give you more money to offer over that sales price because right now, we are in a seller's market here in Las Vegas. Now, at the end of the day, most prices on homes are going to be in that three to $600,000 range. We typically don't see buyers getting into the seven, eight, and $900,000 price points unless they're going into a semi-custom home or new construction and/or the higher echelon of property prices here in Las Vegas, Nevada.
Nonetheless, you can also still do some first-time home buyer programs up to that $647,000 loan amount as well, such as Fannie Mae HomeReady with as little as 3% down, reduced interest rates, and reduced mortgage insurance. Freddie Mac also came out with a new program as well, where they're giving up to $2,500 towards the borrower's down payment or closing costs, their choice. Again, it has to be under that $647,000 purchase price. So if you are a first-time buyer, there are some programs that are still available for you to get assistance in qualifying for that home loan. And if you are a first-time buyer in general and you're just looking for the lowest out-of-pocket expense possible, that way, you have additional funds to work with the seller and/or just reinvest back into that property; there are still options out there for you.
